Gold Price Rises 1.08% on Oct 27, 2026 as Oil Retreats Before Fed

Key takeaways

• The gold price rose 1.08% on Tuesday: spot gold (XAU/USD) closed October 27, 2026 at $4,060.20 an ounce, up $43.48, according to Trading Economics. Investing.com data show a similar close of $4,059.56.
• The gain reversed an early dip: spot gold touched a low near $3,989 before rebounding above $4,060 in the US afternoon, FXStreet and Investing.com data show.
• December COMEX gold futures last traded at $4,073.10, up $34.70 or +0.86% from Monday's $4,038.40 close, Yahoo Finance data show.
• Lower oil prices eased inflation worries one day before the Federal Reserve's October 28 decision, according to Trading Economics and FXStreet, even as the dollar index rose 0.39% to 102.35.
• The 10-year US real yield slipped to 2.64% from 2.66%, and the nominal 10-year yield eased to 4.99%, official US Treasury data show.

Session recap

Gold recovered from an early sell-off to post its second straight daily gain, after Monday's move back above $4,000 (see our October 26 gold brief). For other regions, see Asian and global markets today. In Asian trade, spot gold was down 0.2% at $4,007.29 at 03:21 UTC, Reuters reported via Business Recorder, as a firmer dollar weighed. Kitco NewsWire put gold near $3,994.60 in early US trading. The metal then turned higher as crude prices fell, and finished the day at $4,060.20.

Spot gold compares with Trading Economics' Monday close of $4,016.72. Futures rows are the last trade at the 21:00 UTC daily close, and changes are measured from Monday's closing values on Yahoo Finance ($4,038.40 for gold, $54.108 for silver). Gold futures traded between $4,001.60 and $4,079.40; silver futures between $52.71 and $54.64. Investing.com recorded a spot range of $3,989.33 to $4,065.76. Treasury publishes yields to two decimals, based on market quotes near 15:30 New York time; changes compare with October 26. The LBMA Gold Price AM and PM benchmarks are published with a delay and were not publicly available at the time of writing.

Tuesday's rally took spot gold back to roughly where it traded before last Friday's drop. Last week gold fell below $4,000 for the first time since mid-July and lost 4%, its worst week in about four months, Reuters reported via Business Recorder.

What drove it

Oil retreated, easing inflation worries

The main driver of the turnaround was a pullback in crude. West Texas Intermediate fell more than 1% to $100.05 a barrel after pushing above $100 on Monday, FXStreet reported. Trading Economics also linked gold's recovery to falling oil prices, which eased inflation concerns ahead of the Fed meeting. Earlier in the day, higher energy prices had done the opposite, feeding inflation worries and rate-hike expectations, according to the Reuters report. Our explainer on how oil price shocks hit inflation and rates sets out that chain.

The Fed meeting is under way

The Federal Open Market Committee began its two-day meeting on Tuesday. Policymakers are widely expected to hold the target range at 3.75%–4.00% on Wednesday, Kitco reported, while traders still lean toward another hike in December, according to Reuters and FXStreet. Gold pays no interest, so expectations of higher rates raise the opportunity cost of holding it. Traders will watch Chair Kevin Warsh's guidance on December closely, FXStreet wrote. Our Fed October meeting explainer covers what policymakers are weighing.

Gold rose despite a firmer dollar

The dollar index climbed 0.39% to 102.35, Yahoo Finance data show. A stronger dollar usually weighs on gold, which is priced in dollars, and Reuters said a dollar near a one-week high made bullion less attractive for overseas buyers in Asian trade. By the close, gold had absorbed that headwind. FXStreet noted the metal rebounded even as the dollar and Treasury yields rose during the session.

Real yields edged lower

Treasury's end-of-day figures were mildly supportive. The 10-year real yield, the return after inflation measured through inflation-protected Treasuries (TIPS), fell to 2.64% from 2.66%. The 10-year nominal yield slipped to 4.99%, while the 2-year yield, which is more sensitive to Fed expectations, rose to 4.70%.

US data were mixed

The Conference Board's consumer confidence index rose to 91.7 in October from 84.2, and durable goods orders rose 1.8% in September, FXStreet reported. Kitco noted that September consumer prices rose 3.7% from a year earlier, keeping inflation above the Fed's 2% goal.

Positioning and silver

Ilya Spivak, head of global macro at Tastylive, said gold was still digesting Friday's range after last week's big drop, Reuters reported. Silver swung more sharply: Kitco reported it down about 2% in early US trading, but December silver futures ended up 0.72% at $54.495.

What it means

Analysis. Gold is still trading mainly on rate expectations. Oil moves inflation expectations, which move Fed bets and real yields. Tuesday's swing from an early loss to a 1.08% gain shows how quickly that chain can turn within a single session.

Political & policy watch

• US-Iran tensions. Talks between Washington and Tehran have reportedly stalled, and there are reports that the US and Israel could resume strikes on Iran after the US midterm elections, FXStreet wrote. Neither government has announced such plans.
• Strait of Hormuz and the Houthis. Uncertainty over energy flows through the Strait of Hormuz has kept crude elevated, and Houthi attacks are continuing, Kitco reported. Renewed diplomacy has eased some escalation fears, but no settlement has been announced.
• Federal Reserve. The decision on the October 27–28 meeting is due Wednesday. Policymakers have signaled no hike this week, but investors doubt a pause will last, according to Reuters.
• US politics. The November 3 midterm elections fall six days after the Fed decision.

What to watch next

• October 28, 18:00 UTC: FOMC rate decision, followed by Chair Warsh's press conference. See our central bank meeting calendar.
• October 29: US third-quarter GDP and core PCE inflation data, plus the European Central Bank decision, where a hold is expected, according to FXStreet.
• October 30: Bank of Japan policy decision.
• November 3: US midterm elections.
• Each London business day: LBMA Gold Price AM (10:30 London) and PM (15:00 London) benchmarks.

Risk checklist for readers

• Decision days are volatile. Prices can move sharply on the Fed statement and again during the press conference, sometimes in opposite directions.
• Intraday swings can be large. Tuesday's spot range was about $76, so early-session prices can differ widely from the close.
• Watch real yields. The TIPS yield shows the return available after inflation and remains one of gold's most-watched drivers.
• Oil and geopolitics feed into gold. Headlines from the Gulf move energy prices, inflation expectations and rate bets at the same time.
• Know which price you are reading. Spot, futures, LBMA benchmarks and ETF prices differ and are set at different times.
• Leverage magnifies losses. Futures and margin products can force selling in fast markets.
• Use primary data. The US Treasury, the Fed, CME Group, LBMA and the World Gold Council publish the figures behind most headlines.

This article is for information only and is not investment advice.